USBCI Frequently Asked Questions (FAQ)

The Utah Small Business Credit Initiative (USBCI) partners with financial institutions to provide small businesses with loans.

● What is the Utah Small Business Credit Initiative?

The Utah Small Business Credit Initiative (USBCI) is $69 million in federal funding to help small businesses access loans. It consists of two programs: a Capital Access Program and a Loan Participation Program.

● When does this program open?

In December 2022, USBCI began taking applications from lenders to participate in the program. Here’s an update to what’s been happening over the last few months:

○ Organizational restructure at the Governor’s Office of Economic Opportunity, enabling our office to meet the high demand for this program.

○ Approval to increase program staffing from 1 to 3 occurred after the close of the legislative session in March

○ $31 million moved to the Loan Participation Program. This resulted in low rates for small business borrowers, but also required collaboration with the U.S. Department of the Treasury on contract and compliance implications.

We are so grateful for public interest in this program and we are doing everything we can to make sure the lenders are fully prepared to accept program applicants and the program is compliant with federal regulation.

With that said, the Capital Access Program is currently open to small businesses. The Loan Participation Program will open to small businesses in the coming weeks.

● How do I know which program to apply to?

Visit the USBCI webpage and click the “USBCI for Small Businesses” portal for a summary of the USBCI programs. When you apply to a USBCI-enrolled lender, the lender will also let you know which program best fits your needs.

● How do I apply?

Small businesses can apply for loans from this program through a USBCI-enrolled business.utah.gov/usbci lender.

● Where can I find the USBCI-enrolled-Lender List?

Click here to access the USBCI-enrolled Lender List.

● Can I meet with you for a small business funding consultation?

Until we are fully staffed, we have paused small business funding consultations. In the meantime, please join us for USBCI Office Hours every Monday at 2pm where you can speak directly with USBCI program staff. Click here to register.

● Do you need collateral/personal guarantees for this program?

Because this program works closely with lenders to deploy private capital, USBCI reduces but does not eliminate collateral requirements.

● What are the interest rates?

The Capital Access Program provides businesses with market interest rates. The Loan Participation Program provides businesses with a low blended interest rate, meaning 50% of the loan is set to the market rate and 50% of the loan is set to a fixed rate between 1-3%.

● How do I know if I’ll get approved?

Small businesses will be notified by their USBCI-enrolled lender if they are approved.

● Who paid for this program?

The American Rescue Plan Act of 2021 authorized and funded this initiative. The Governor’s Office of Economic Opportunity works closely with the U.S. Department of the Treasury to administer this initiative.

● How is this different from the SBA lending programs?

First, this program receives funding from the U.S. Department of the Treasury instead of the Small Business Administration. Second, both have different program designs which accomplish different objectives for small businesses. Both USBCI and SBA programs offer lenders another tool in the toolkit to help small businesses get funded.

● Is funding only for underserved communities?

USBCI serves all eligible Utah business owners. While USBCI will expand access to capital for business owners in underserved communities, with a target of 29% of program funds allocated to businesses owned by women and culturally, economically, and geographically diverse entrepreneurs, all demographic data is collected after the business.utah.gov/usbci loan has been approved. This allows us to ensure the program is meeting its mission and funding is equitably available to all Utah businesses. business.utah.gov/usbci